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# 10 Examples of Simple Interest

October 9, 2023 written by Rida Mirza

Simple interest is a fundamental concept in mathematics and finance that involves calculating the interest earned or paid on a principal amount over time at a fixed rate.

### Examples of Simple Interest

These are 10 examples of simple interest.

### Example: 1

Principal amount: \$1,000 Interest rate: 5% per year Time: 2 years Interest = Principal x Rate x Time = \$1,000 x 0.05 x 2 = \$100

### Example: 2

Principal amount: \$2,500 Interest rate: 4% per year Time: 5 years Interest = \$2,500 x 0.04 x 5 = \$500

### Example: 3

Principal amount: \$650 Interest rate: 7% per year Time: 3 years Interest = \$650 x 0.07 x 3 = \$136.50

### Example: 4

Principal amount: \$12,000 Interest rate: 3.5% per year Time: 1 year Interest = \$12,000 x 0.035 x 1 = \$420

### Example: 5

Principal amount: \$750 Interest rate: 2.5% per year Time: 6 months Interest = \$750 x 0.025 x (6/12) = \$9.38

### Example: 6

Principal amount: \$4,800 Interest rate: 6% per year Time: 9 months Interest = \$4,800 x 0.06 x (9/12) = \$216

### Example: 7

Principal amount: \$7,500 Interest rate: 8% per year Time: 2.5 years
Interest = \$7,500 x 0.08 x 2.5 = \$1,500

### Example: 8

Principal amount: \$9,800 Interest rate: 12% per year Time: 4 years Interest = \$9,800 x 0.12 x 4 = \$4,704

### Example: 9

Principal amount: \$650 Interest rate: 5% per year Time: 18 months Interest = \$650 x 0.05 x (18/12) = \$48.75

### Example: 10

Principal amount: \$1,200 Interest rate: 15% per year Time: 3 years Interest = \$1,200 x 0.15 x 3 = \$540

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